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Maybe it would have been more widely received, if the country in general had been prepared more for digital transactions. When electricity supply is often unsta

Maybe it would have been more widely received, if the country in general had been prepared more for digital transactions. When electricity supply is often unstable (especially during and after natural disasters as the one that struck the south east coast last year), it did not make sense to roll out this measure when it was rolled out.

candiodari 9y ago
You are confusing the purpose of the demonetization. You might think it is to improve the economy. False. You might think it is to make payments more fluid and fast. False. Modernization ? No. You might even think it is a corrupt measure to make the banks richer. False. It is to get the people making the decision reelected. It is to give the government party control of the spending of other political parties that might replace them [1]. This decision had a very specific aim, and achieved exactly that aim. In very predictable fashion it did a ridiculous amount of economic damage to the country in the process, but that shows nothing more than what the priorities of Mr. Modi are. It was very well received (judging by voting afterwards) and further cemented the current party into power. That was the purpose. That aim was achieved. Why was the timing what it was ? It was election time ... [2] Immediately before this "make or break" (dixit BBC) election BJP suddenly made itself the only party capable of doling out cash and other direct political favors in that state. Coincidence ? No. [1] https://www.forbes.com/sites/timworstall/2016/12/17/this-is-clever-indias-political-parties-can-deposit-old-notes-with-no-tax-investigation/#4f0663d57c92 https://www.forbes.com/sites/timworstall/2016/12/17/this-is-... [2] http://www.bbc.com/news/world-asia-india-39228615 http://www.bbc.com/news/world-asia-india-39228615
- sremani 9y ago
  This is conspiracy theory masquerading as a political strategy. The judgement on demonetization should be withheld for couple of years, the banks while accepting old cash collected substantial amount of information before giving new cash. This is going to be a busy year for tax man in India and so will be the next one. Even though most of the money made back into system, there are enough breadcrumbs to triangulate bad actors and black money. Expect some drastic policy changes with real estate, corporate taxation and gold.
  - mos38 9y ago
    Like indian traffic and indian traffic cops, there weren't ever enough tax men to enforce anything too strictly even before all this new data was collected. But I agree in general that it takes things in a positive direction long term. The digitization allows for more automation and wider enforcement. Its going to take some time to settle. Hope the opposition doesn't complicate the story with mindless hysterics.
  - wtmt 9y ago
    > Expect some drastic policy changes with real estate, corporate taxation and gold. Nope. I don’t expect any changes on real estate or corporate taxation, except to help people who have/control them become richer and have even more lax regulation. A lot of real estate is held by politicians of all political parties. So there’s no reason they’d shoot themselves in the foot. One “maverick” Prime Minister cannot overrule hundreds of others with vested interests, however clean or idealistic he may project himself to be. As for corporates, the NDA government is highly favorable to them. The tax rates are set to decrease as announced a couple of years ago anyway. Gold is probably a slightly easier target. It has already seen restrictions before, which means the rich and powerful likely don’t hold too much of it or transact a lot with it.
  - kamaal 9y ago
    >>The judgement on demonetization should be withheld for couple of years How many? 10? 20? After than what happens? People stop taking bribes? Start paying taxes? Drive around Bangalore anytime during day light. See how many policemen are standing every 1 km negotiating bribes from motorcycle/car users. Go for property registration anywhere, go see what is the going rate for a single registration... Things like Demonetization changed/changes NOTHING. You need to change people. And that is next to impossible in India. >>Even though most of the money made back into system 0 Black Money came back into the system, as per the government's own admission. >>Expect some drastic policy changes with real estate, corporate taxation and gold. So we learn nothing from the mistakes? Only thing this will do, is make millions of people jobless. Destroy family incomes, disrupt their ability to provide for their families and put the economy in tremendous strife. For any policy to work, People need to cooperate. In India its basically every one, all the time optimizing only for personal profit. The only thing you will end up doing in this set up is harming a lot of innocent people, and end up providing immunity training to the crooks.
- fooker 9y ago
  I'm surprised you do not mention illuminati somewhere.
- product50 9y ago
  While we are speculating without any sense of data/proof (no, just linking articles is not proof), why don't you also talk about JFK assassination, NASA Moon Landing or who killed Aarushi?

candiodari 9y ago

You are confusing the purpose of the demonetization. You might think it is to improve the economy. False. You might think it is to make payments more fluid and fast. False. Modernization ? No. You might even think it is a corrupt measure to make the banks richer. False. It is to get the people making the decision reelected. It is to give the government party control of the spending of other political parties that might replace them [1]. This decision had a very specific aim, and achieved exactly that aim. In very predictable fashion it did a ridiculous amount of economic damage to the country in the process, but that shows nothing more than what the priorities of Mr. Modi are. It was very well received (judging by voting afterwards) and further cemented the current party into power. That was the purpose. That aim was achieved. Why was the timing what it was ? It was election time ... [2] Immediately before this "make or break" (dixit BBC) election BJP suddenly made itself the only party capable of doling out cash and other direct political favors in that state. Coincidence ? No. [1] https://www.forbes.com/sites/timworstall/2016/12/17/this-is-clever-indias-political-parties-can-deposit-old-notes-with-no-tax-investigation/#4f0663d57c92 https://www.forbes.com/sites/timworstall/2016/12/17/this-is-... [2] http://www.bbc.com/news/world-asia-india-39228615 http://www.bbc.com/news/world-asia-india-39228615

sremani 9y ago
This is conspiracy theory masquerading as a political strategy. The judgement on demonetization should be withheld for couple of years, the banks while accepting old cash collected substantial amount of information before giving new cash. This is going to be a busy year for tax man in India and so will be the next one. Even though most of the money made back into system, there are enough breadcrumbs to triangulate bad actors and black money. Expect some drastic policy changes with real estate, corporate taxation and gold.
- mos38 9y ago
  Like indian traffic and indian traffic cops, there weren't ever enough tax men to enforce anything too strictly even before all this new data was collected. But I agree in general that it takes things in a positive direction long term. The digitization allows for more automation and wider enforcement. Its going to take some time to settle. Hope the opposition doesn't complicate the story with mindless hysterics.
- wtmt 9y ago
  > Expect some drastic policy changes with real estate, corporate taxation and gold. Nope. I don’t expect any changes on real estate or corporate taxation, except to help people who have/control them become richer and have even more lax regulation. A lot of real estate is held by politicians of all political parties. So there’s no reason they’d shoot themselves in the foot. One “maverick” Prime Minister cannot overrule hundreds of others with vested interests, however clean or idealistic he may project himself to be. As for corporates, the NDA government is highly favorable to them. The tax rates are set to decrease as announced a couple of years ago anyway. Gold is probably a slightly easier target. It has already seen restrictions before, which means the rich and powerful likely don’t hold too much of it or transact a lot with it.
- kamaal 9y ago
  >>The judgement on demonetization should be withheld for couple of years How many? 10? 20? After than what happens? People stop taking bribes? Start paying taxes? Drive around Bangalore anytime during day light. See how many policemen are standing every 1 km negotiating bribes from motorcycle/car users. Go for property registration anywhere, go see what is the going rate for a single registration... Things like Demonetization changed/changes NOTHING. You need to change people. And that is next to impossible in India. >>Even though most of the money made back into system 0 Black Money came back into the system, as per the government's own admission. >>Expect some drastic policy changes with real estate, corporate taxation and gold. So we learn nothing from the mistakes? Only thing this will do, is make millions of people jobless. Destroy family incomes, disrupt their ability to provide for their families and put the economy in tremendous strife. For any policy to work, People need to cooperate. In India its basically every one, all the time optimizing only for personal profit. The only thing you will end up doing in this set up is harming a lot of innocent people, and end up providing immunity training to the crooks.
fooker 9y ago
I'm surprised you do not mention illuminati somewhere.
product50 9y ago
While we are speculating without any sense of data/proof (no, just linking articles is not proof), why don't you also talk about JFK assassination, NASA Moon Landing or who killed Aarushi?